Higher Open Predicted For Indonesia Stock Market On Thursday

(RTTNews) - The Indonesia stock market has moved higher in two straight sessions, advancing almost 40 points or 0.6 percent along the way. The Jakarta Composite Index now sits just beneath the 7,290-point plateau and it's expected to open to the upside again on Thursday.

The global forecast for the Asian markets is upbeat, fueled by technology shares ahead of key inflation data. The European and U.S. markets were up and the Asian bourses are tipped to open in similar fashion.

The JCI finished slightly higher on Wednesday following gains from the food stocks, weakness from the cement companies and a mixed picture from the financial sector.

For the day, the index added 17.24 points or 0.24 percent to finish at 7,287.04.

Among the actives, Bank Danamon Indonesia collected 0.39 percent, while Bank Negara Indonesia dropped 0.82 percent, Bank Central Asia rose 0.25 percent, Bank Rakyat Indonesia shed 0.41 percent, Indocement plummeted 3.62 percent, Semen Indonesia plunged 3.11 percent, Indofood Sukses Makmur advanced 0.84 percent, United Tractors sank 0.53 percent, Astra International lost 0.44 percent, Vale Indonesia declined 0.50 percent and Bank Mandiri was unchanged.

The lead from Wall Street is broadly positive as the major averages opened flat on Wednesday but climbed steadily throughout the day, ending with strong gains near session highs.

The Dow surged 429.39 points or 1.09 percent to finish at 39,721.36, while the NASDAQ rallied 218.16 points or 1.18 percent to end at a record 18,647.45 and the S&P 500 jumped 56.93 points or 1.02 percent to close at 5,633.91 - also a record.

The rally on Wall Street was due to strength among technology stocks, as reflected by the notable advance by the tech-heavy NASDAQ.

Stocks may also have benefitted from optimism about the outlook for interest rates ahead of the release of closely watched consumer price inflation data later today.

During congressional testimony, Federal Reserve Chair Jerome Powell said more good data would strengthen the central bank's confidence inflation is moving sustainably toward its 2 percent target and lead to a potential interest rate cut.

Oil futures settled higher Wednesday after data showed a bigger than expected drop in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for August ended higher by $0.69 at $82.10 a barrel.